Total and Permanent Disability Insurance (TPD) is normally an optional extra cover on a life or trauma insurance policy and commonly covers against you being permanently unable to work in your chosen occupation. The amount of disability required varies - for example a surgeon might be considered totally disabled through the loss of one hand. The amount of cover you can buy is normally limited to the amount of the life or trauma cover purchased.

Total Permanent Disability is a prepayment of the life or trauma insurance. After a payout you may become uninsurable and no longer able to obtain death, TPD, trauma or income protection cover. It is therefore important to have sufficient cover to enable you to live out your remaining life on the proceeds of the claim.

What different types of TPD are there?

TPD Own Occupation Definition

The length of potential payout if you were to claim from day one. You can typically set up your policy to cover you until age 55, 60 or 65 to tie in with your desired retirement age.

TPD Own or Suited Occupation Definition

A payout occurs if by reason of illness, accident or injury you are permanently unable to perform your normal occupation and/or an occupation suitable to your training and experience.

TPD Any Occupation Definition

A payout occurs if by reason of illness, accident or injury you are permanently unable to perform any work at all.